Wednesday, 26 April 2017

UNCTAD e-commerce Week 2017: Putting people at the heart of the digital economy

To mark UNCTAD
e-commerce week (24-28 April 2017), Consumers International’s Director
General Amanda Long outlines the need for a fairer and more inclusive digital
economy that is built on consumer protection and trust.

It goes without
saying that people are at the heart of digital transformation. People as
consumers, as citizens, as families, friends and employees, as students or as
business owners.

For many
people, e-commerce is the gateway to the digital world and the wealth of social
and economic opportunities it provides. It is where we buy and compare
products, transfer our money and savings, set up and maintain online
businesses. And for those who are only now gaining access to the internet
e-commerce is likely to be their first online interaction.

In recent
years, the global e-commerce industry has seen an explosive pattern of growth.
Total e-commerce sales generated around $1 trillion in 2012 and this total is now thought to be
close to $1.9 trillion annually - almost doubling in just four years.

Yet whilst
these figures give us a sense of the enormous potential that the digital
economy could have for consumers and businesses across the globe, to fully
embrace the benefits, we must create a digital world that works for
everyone, everywhere.

The many
faces of e-commerce

By taking a
look at just some of the wonderful examples of how people are using e-commerce,
it is clear to see why diversity and participation are so important:

In Uganda,
young people with innovative business ideas are being granted access to
crowdsourced loans online through the Youth Empowerment scheme. [1]

Artisan
producers in Morocco use online platforms like Anao to sell products direct to
customers around the world. Co-operatives like the Women Weavers of Morocco
eliminate the need for the middleman and so increase profits. [2]

Start-up
business like the SafeMoto app in Rwanda are combatting the issue of road
accidents, 80% of which involve mototaxis. The app scores mototaxi drivers for
safety using telematic software on their smartphones. Customers can clearly see
who are the bad drivers, and opt for a safer ride thus driving demand for safer
transport. [3]

In all of these
examples we see the empowerment of consumers through the creation of new
services and jobs, new markets and growth.

There is so
much more, however, that still needs to be done before we have a digital world
that works for everyone. With only 50% of the world currently online, there are still many consumers who
are missing out on the power of e-commerce. According to the World Bank’s Digital Dividends report, only 15% of the world’s
population have access to high-speed broadband and nearly 2 billion people do
not own a mobile phone, leaving them unable to fully participate in the digital
economy.

It is vital
that we find the right balance between e-commerce that works for businesses
and consumers. To do this, we must strive for digital transformation that
is built on consumer trust and participation.

So how do
we get it right?

Ensuring that
everyone has their say. Yesterday I was on the UNCTAD e-commerce Week high-level
panel on ‘Digital Transformational for all’. The event included talks from Mukhisa
Kituyi, Secretary-General of UNCTAD, Jack Ma, founder and chairman of Alibaba
Group as well as politicians, entrepreneurs, representatives’ from civil
society and academia.

Another exciting announcement this week was the launch of UNCTAD’s ‘e-Trade for All’ online platform. This innovative online information hub will connect developing countries with potential partners and donors to empower them to make the most of e-commerce as a powerful driver of development.We must follow
the superb example set by UNCTAD’s e-commerce week and continue to involve a multitude
of voices and opinions on the journey to digital transformation and progress.
Let’s listen to consumers, producers, employees, prosumers and business owners about
their experiences online, their expectations, needs and concerns. What does
trust and confidence look like to them and how do we design it in?

Breaking
the assumption that consumer protection stifles innovation. It won’t. In fact, careful design
and safeguards to improve people’s confidence is essential if we want to bring
everyone along on the journey to digital transformation and growth. We need to
pay attention to social, economic, cultural and personal impacts on people and
enterprises. If we don’t we risk creating a digital world where people are
either left behind or lose their faith in the digital products and services
available to them.

Making
the most of international cooperation and connection. Building a trusted digital world
can’t be done by one single entity, because we are all connected. Connectivity
is both a blessing and a curse. On the one hand, we can connect to new
markets, new products, our friends, new investments. On the other hand, when
everyday things like payments mess up, or updates slow down a device, or when
uncanny decisions are made about us based on our habits, it erodes our faith in
the other amazing things that we can do with it.

So we need
to make the most of the positive nature of connectivity. These connections
across sectors, borders and segments mean that international organizations like
UNCTAD are more important than ever. The UN Guidelines on Consumer Protection, for example,were updated
last year to reflect the changing digital landscape for consumers. They show
how together international bodies can create sound principles for consumers,
certainty for businesses, and set a marker for good business practice in a
changing world.

By working
together, we can ensure the e-commerce industry is a driver of greater
prosperity and equality for consumers across the globe.